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The Markets:

Charts Courtesy of http://finance.yahoo.com/

Oil rose nearly 2% as a tropical cyclone nears the Persian Gulf and raises concerns over potential supply disruptions.

The U.S. dollar index fell ahead of meetings on Wednesday by the European Central Bank and the Bank of England that will likely raise interest rates and indicate more interest rates increases in the future while the fed likely keeps interest rates unchanged in the U.S.

Treasuries rose on concerns over China as the Shanghai Index fell 8.3%.

The Dow, Nasdaq, and S&P opened lower on worries over China, but all three indices rose to find slight gains by the close despite markedly higher oil as well.

Among the big names making news in the market today were Krispy Kreme, Dominion, Palm, Loews, UBS, and Flextronics and Solectron.

The Commentary:

“August Gold finished down 0.6 at 676.3, 3.2 off the high and 1.5 up from the low.

July Silver closed up 0.005 at 13.745. This was 0.035 up from the low and 0.095 off the high.

The gold market showed early strength but seemed to lose its bullish posture as the session progressed. It did seem as if a weaker than expected US Factory Orders report undermined the gold trade, but it is also possible that talk of renewed Central Bank gold sales also served to prompt profit taking. However, the Dollar remained weak but apparently some in the trade were disappointed in the failure to see the June Dollar Index actually extend on the downside. Certainly the gold market was supported by early news that some South African mining Unions were poised to request a 15% wage increase. With gold prices failing to rise in the face of sharp gains in energy prices, it is possible that some recent buyers decided to bank profits, but the test of the vicinity of the $680 level (with the $679.50 high August high) would seem to point to residual bullishness in the marketplace.

While the July silver contract did manage another new high for the move, the fact that the market was unable to decisively hold above the prior close had to be disappointing to some in the bull camp. As suggested in the mid day coverage, the silver market seemed to be supported by the fact that copper prices rose to the highest level since May 16th, but at the same time weakness in equity prices, concern for more near term weakness in the Asian equity markets and softer than expected US scheduled data is certainly dampening the recently revived bullish environment in silver. Some players have suggested that silver needs to see persistent upbeat news from the investment demand front to effectively climb back to the $14.00 level.” - The Hightower Report, Futures Analysis and Forecasting

GATA Posts:

Some bank other than ECB, probably Spain, was selling gold heavily

UBS affects to be mystified by gold's loss of correlation

James Turk: Probabilities favor rally for gold and silver

The Statistics:

As of close of business: 6/01/2007

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

Note: Change in Total Tonnes from yesterday’s data: The NYSE/SGX added 9.55 tonnes in addition to the 4.62 tonnes added on Friday and the ASX added 0.07 tonnes.

COMEX Gold Trust (IAU)

Note: No change in Total Tonnes from yesterday’s data.

Silver Trust (SLV)

Note: No change in Total Tonnes from yesterday’s data.

The Stocks:

Tanzanian Royalty’s (TRE) assays, Gammon Lake’s (GRS) appointed COO, Fronteer’s (FRG) increased investment in Latin American Minerals, Orko Silver’s (OK.V) assay results, Endeavour’s (EXK) closed acquisition,  Minco Silver’s (MSV.TO) testing, and Coeur’s (CDE) CEO presentation were among the big stories in the gold and silver mining industry making headlines today.

WINNERS

LOSERS

Winners & Losers tracks NYSE and AMEX listed gold and silver mining stocks that trade over $1.

All of today's gold and silver stock news:

Orko Silver Continues to Hit Major Silver-Gold Intercepts at La Preciosa - "Of particular note are the major widths and high grades in the Abundancia and Martha veins in "Mina La Preciosa" sector from drill hole BP07-103. The Abundancia Vein yielded 11.76 metres grading Au 0.082 g/t and Ag 383.6 g/t, for a silver-equivalent of 388.5 g/t. It includes four samples over 1 kg Ag for 1.54 metres grading Au 0.346 g/t and Ag 2,050.1 g/t, for a silver-equivalent of 2,070.9 g/t." More
- June 04, 2007 | Item | E-mail

Melkior-Santoy Announce Resumption of Drilling and Exploration Activities at Otish Uranium Project, Quebec - More
- June 04, 2007 | Item | E-mail

Energy Fuels Updates Arizona Strip Drilling Activities and Senior Appointment - More
- June 04, 2007 | Item | E-mail

Gee-Ten Ventures Inc.: New Nomination - More
- June 04, 2007 | Item | E-mail

Uravan Announces Private Placement - More
- June 04, 2007 | Item | E-mail

Endeavour Closes Acquisition of Bolanitos Property, Mine and Plant Assets From Industrias Penoles SA de CV - "Endeavour Silver Corp. (Toronto:EDR.TO - News)(AMEX:EXK - News)(DBFrankfurt:EJD) announces that it has now closed the acquisition of a 100% interest in the Bolanitos silver (gold) properties, mines and plant in Guanajuato State, Mexico, free and clear of any royalties, from three subsidiary companies of Industrias Penoles SA de CV ("Penoles")." More
- June 04, 2007 | Item | E-mail

Norsemont Mining Appoints Patrick Evans as Director and CEO - More
- June 04, 2007 | Item | E-mail

Cangold Strengthens Management Team - More
- June 04, 2007 | Item | E-mail

Sea Green Capital Corp. Announces Update on Quebec Exploration Programs in Beschefer and Casa Berardi Areas and Completion of Financing - More
- June 04, 2007 | Item | E-mail

Antares Commences 15,000 m Drill Program at Rio Grande Copper-Gold Project, Argentina - More
- June 04, 2007 | Item | E-mail

Mansfield Minerals Inc.: Drilling Program Commences at Rio Grande, Argentina - More
- June 04, 2007 | Item | E-mail